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  • Exam Name: Network Management
  • Last Update: Apr 28, 2024
  • Questions and Answers: 202
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AHM-530 Practice Exam Questions with Answers Network Management Certification

Question # 6

One true statement about the responsibilities of providers under typical provider contracts is that most provider contracts:

A.

include a clause which states that providers must maintain open communications with patients regarding appropriate treatment plans, unless the services are not covered by the member's health plan

B.

hold that the responsibility of the provider to deliver services is usually subject to the provider's receipt of information regarding the eligibility of the member

C.

contain a gag clause or a gag rule

D.

include a clause that explicitly places the responsibility for medical care on the health plan rather than on the provider of medical services

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Question # 7

The Elizabethan Health Plan uses a direct referral program, which means that

A.

PCPs in Elizabethan’s network can make most referrals without obtaining prior authorization from Elizabethan

B.

PCPs in Elizabethan’s network must always refer plan members to other specialists within the network

C.

Elizabethan’s plan members can bypass the PCP and obtain medical services from a specialist without a referral

D.

Elizabethan’s plan members must obtain referrals directly from Elizabethan

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Question # 8

One true statement about the Medicaid program in the United States is that:

A.

The federal financial participation (FFP) in a state's Medicaid program ranges from 20% to 40% of the state's total Medicaid costs

B.

Medicaid regulations mandate specific minimum benefits, under the Early and Periodic Screening, Diagnosis, and Treatment (EPSDT) program, for all Medicaid recipients younger than age 30

C.

The individual states have responsibility for administering the Medicaid program

D.

Non-disabled adults and children in low-income families account for the majority of direct Medicaid spending

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Question # 9

With regard to the compensation of dental care providers in a managed dental care system, it is correct to state that, typically:

A.

dental PPOs compensate dentists on a capitated basis

B.

group model dental HMOs (DHMOs) compensate general dental practitioners on a salaried basis

C.

independent practice association (IPA)-model dental HMOs (DHMOs) capitate general dental practitioners

D.

staff model dental HMOs (DHMOs) compensate dentists on an FFS basis

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Question # 10

When evaluating the success of providers in meeting standards, a health plan must make adjustments for case mix or severity. One true statement about case mix/severity adjustments is that they:

A.

Typically are more important in measuring the performance of PCPs than they are in measuring the performance of specialists

B.

Help compensate for any unusual factors that may exist in a provider's patient population or in a particular patient

C.

Tend to increase the number of providers who are considered to be outliers

D.

Allow for a more equitable comparison of data between providers of outpatient care but not providers of inpatient care

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Question # 11

The provider contract that the Danube Health Plan has with the Viola Home Health Services Organization states that Danube will use a typical flat rate reimbursement arrangement to compensate Viola for the skilled nursing services it provides to Danube’s plan members. A portion of the contract’s reimbursement schedule is shown below:

Home Health Licensed Practical Nurse (LPN): $45 per visit or $90 per diem

Home Health Registered Nurse (RN): $50 per visit or $110 per diem

Last month, an LPN from Viola visited a Danube plan member and provided 1½ hours of home healthcare, and an RN from Viola visited another Danube plan member and provided 7 hours of home healthcare. The following statement(s) can correctly be made about Danube’s payment to Viola for these services:

A.

Danube most likely owes $90 for the LPN’s skilled nursing services and $110 for the RN’s skilled nursing services.

B.

Danube’s payment amount could be different from the amount called for in the reimbursement schedule if the level of care provided to one of these plan members was significantly different from the level of care normally provided by Viola’s RNs and LPNs.

C.

Both A and B

D.

A only

E.

B only

F.

Neither A nor B

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Question # 12

If a member of the Green Health Plan reasonably believes that a provider in Green's provider network was acting as Green's employee or agent while providing negligent care, then the member may have cause to bring action against the health plan. This legal concept is known as vicarious liability. Steps that Green can take to reduce its exposure to vicarious liability claims include:

A.

Placing restrictions on provider-member communication involving treatment decisions.

B.

Implementing risk management and quality assurance programs for its provider network.

C.

Including in its provider agreements and marketing and membership literature a statement that members of the Green provider network are not independent contractors.

D.

All of the above.

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Question # 13

The following statements are about Medicaid health plan entities. Select the answer choice containing the correct statement:

A.

To keep Medicaid enrollment costs as low as possible, states typically prohibit the use of third-party entities known as enrollment brokers to handle the recruitment and enrollment of Medicaid recipients in health plan plans

B.

Primary care case managers (PCCMs) are individuals who contract with a state's Medicaid agency to provide primary care services mainly to urban areas.

C.

Typically, Medicaid beneficiaries must be given a choice between at least two health plan entities.

D.

Medicaid health plan entities are responsible for providing primary coverage for all dually-eligible beneficiaries.

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Question # 14

Martin Breslin, age 72 and permanently disabled, is classified as dually-eligible. This information indicates that Mr. Breslin qualifies for coverage by both

A.

Medicare and private indemnity insurance, and Medicare provides primary coverage

B.

Medicare and Medicaid, and Medicare provides primary coverage

C.

Medicaid and private indemnity insurance, and Medicaid provides primary coverage

D.

Medicare and Medicaid, and Medicaid provides primary coverage

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Question # 15

Grant Pelham is covered by both a workers’ compensation program and a group health plan provided by his employer. The Shipwright Health Plan administers both programs. Mr. Grant was injured while on the job and applied for benefits.

Because Mr. Pelham was injured on the job, he is entitled to receive benefits through workers’ compensation. Under the terms of the state-mandated exclusive remedy doctrine included in the workers’ compensation agreement, Mr. Pelham will most likely be prohibited from

A.

Receiving workers’ compensation benefits unless he can show that the employer was at fault for his injury

B.

Obtaining care from providers who are not members of a workers’ compensation network

C.

Suing his employer for additional benefits

D.

Claiming benefits from both workers’ compensation and his group health plan

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Question # 16

The Justice Health Plan is eligible to submit reportable actions against medical practitioners to the National Practitioner Data Bank (NPDB). Justice is considering whether it should report the following actions to the NPDB:

Action 1—A medical malpractice insurer made a malpractice payment on behalf of a dentist in Justice’s network for a complaint that was settled out of court.

Action 2—Justice reprimanded a PCP in its network for failing to follow the health plan’s referral procedures.

Action 3—Justice suspended a physician’s clinical privileges throughout the Justice network because the physician’s conduct adversely affected the welfare of a patient.

Action 4—Justice censured a physician for advertising practices that were not aligned with Justice’s marketing philosophy.

Of these actions, the ones that Justice most likely must report to the NPDB include Actions

A.

1, 2, and 3 only

B.

1 and 3 only

C.

2 and 4 only

D.

3 and 4 only

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Question # 17

From the following answer choices, choose the term that best matches the description.

An integrated delivery system (IDS), which controls most providers in a particular specialty, agrees to provide that specialty service to a health plan only on the condition that the health plan agree to contract with the IDS for other services.

A.

Group boycott

B.

Horizontal division of territories

C.

Tying arrangements

D.

Concerted refusal to admit

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Question # 18

The Gardenia Health Plan has a national reputation for quality care. When Gardenia entered a new market, it established a preferred provider organization (PPO), a health maintenance organization (HMO), and a point-of-service product (POS) to serve the plan members in this market. All of the providers included in the HMO or the POS are included in the broader provider panel of the PPO. The POS will be a typical two-level POS that offers a cost-based incentive plans for PCPs, and the HMO is a typical staff model HMO.

One statement that can correctly be made about Gardenia’s two-level POS product is that

A.

members who self-refer without first seeing their PCPs will receive no benefits

B.

both Gardenia and the PCPs stand to benefit if the non-provider panels are kept relatively narrow

C.

members will pay higher coinsurance or copayments if they first see their PCPs each time

D.

the plan offers no financial incentives to members to choose an in-network specialist over a non-network specialist

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Question # 19

Provider panels can be either narrow or broad. Compared to a similarly sized health plan that uses a broad provider panel, a health plan that uses a narrow provider panel most likely can expect to

A.

Experience higher contracting costs

B.

Encounter increased difficulty in utilization management

C.

Have to charge higher health plan premiums

D.

Experience lower provider relations costs

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Question # 20

The provider contract between the Regal Health Plan and Dr. Caroline Quill contains a type of termination clause known as termination without cause. One true statement about this clause is that it

A.

Requires Regal to send a report to the appropriate accrediting agency if the health plan terminates Dr. Quill’s contract without cause

B.

Requires that Regal must base its decision to terminate Dr. Quill’s contract on clinical criteria only

C.

Allows either Regal or Dr. Quill to terminate the contract at any time, without any obligation to provide a reason for the termination or to offer an appeals process

D.

Allows Regal to terminate Dr. Quill’s contract at the time of contract renewal only, without any obligation to provide a reason for the termination or to offer an appeals process

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Question # 21

Before incurring the expense of assembling a new PPO network, the Protect Health Plan conducted a cost analysis in order to determine the cost-effectiveness of renting an existing PPO network instead. In calculating the overall cost of renting the network, Protect assumed a premium of $2.52 per member per month (PMPM) and estimated the total number of members to be 9,000. This information indicates that Protect would calculate its annual network rental cost to be

A.

$42,857

B.

$56,700

C.

$272,160

D.

$680,400

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Question # 22

Open panel health plans can contract with individual providers or with various provider groups when developing their networks. The following statements are about factors that an open panel health plan might consider in contracting with different types of provider organizations. Select the answer choice that contains the correct statement.

A.

One limitation of contracting with multispecialty groups is that a health plan obtains only specialty consultants, but not PCPs.

B.

One benefit to a health plan in contracting with an integrated delivery system (IDS) is the ability to have a network in rapid order and to enter into a new market or one that is already competitive.

C.

A health plan that contracts with an individual practice association (IPA) has a greater ability to select and deselect individual physicians than when contracting directly with the providers.

D.

A health plan that contracts with an IDS is able to eliminate the antitrust risk that exists when contracting with an IPA.

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Question # 23

In developing a provider network in an large city with a high concentration of young families, the Gypsum Health Plan has set goals focused on the needs of that particular market. The following statements are about this situation. Three of the statements are true, and one of the statements is false. Select the answer choice that contains the FALSE statement.

A.

Gypsum should attempt to recruit providers who offer extended office hours.

B.

Gypsum can use the cost-effectiveness of its own existing networks as a benchmark for its cost-savings goals in this market.

C.

Gypsum will most likely attempt to contract with HMOs.

D.

Gypsum most likely should set lower cost-savings goals in this market than it would in a rural market with few young families.

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Question # 24

The Gladspell HMO has contracted with the Ellysium Hospital to provide subacute care to its plan members. Gladspell pays Ellysium by using a per diem reimbursement method.

If Gladspell’s per diem contract with Ellysium is typical, then the per diem payment will cover such medical costs as

A.

Laboratory tests

B.

Respiratory therapy

C.

Semiprivate room and board

D.

Radiology services

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Question # 25

Health plans use a variety of sources to find candidates to recruit for their provider networks. In general, two of the most effective methods of finding candidates are through

A.

Word of mouth and on-site training programs

B.

Word of mouth and direct mail

C.

Advertisements in local newspapers and on-site training programs

D.

Advertisements in local newspapers and direct mail

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Question # 26

The NPDB specifies the entities that are eligible to request information from the data bank, as well as the conditions under which requests are allowed. In general, entities that are eligible to request information from the NPDB include

A.

medical malpractice insurers and the general public

B.

medical malpractice insurers and professional societies that are screening applicants for membership

C.

the general public and state licensing boards

D.

state licensing boards and professional societies that are screening applicants for membership

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Question # 27

One important aspect of network management is profiling, or provider profiling. Profiling is most often used to

A.

measure the overall performance of providers who are already participants in the network

B.

assess a provider’s overall satisfaction with a plan’s service protocols and other operational areas

C.

verify a prospective provider’s professional licenses, certifications, and training

D.

familiarize a provider with a plan’s procedures for authorizations and referrals

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Question # 28

One reason that an health plan would want to use the actual acquisition cost (AAC) pricing system to calculate its drug costs is that, of the systems commonly used to calculate drug costs, the AAC system

A.

Provides the lowest level of cost for the health plan

B.

Most closely represents what pharmacies are actually charged for prescription drugs

C.

Offers the best control over multiple-source pharmaceutical products

D.

Is the least expensive pricing system for the health plan to implement

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Question # 29

Most health plan contracts provide an outline of the criteria that a healthcare service must meet in order to be considered “medically necessary.” Typically, in order for a healthcare service to be considered medically necessary, the service provided by a physician or other healthcare provider to identify and treat a member’s illness or injury must be

A.

Consistent with the symptoms of diagnosis

B.

Furnished in the least intensive type of medical care setting required by the member’s condition

C.

In compliance with the standards of good medical practice

D.

All of the above

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Question # 30

In most health plan pharmacy networks, the cost component of the reimbursement formula is based on the average wholesale price (AWP). One true statement about the AWP for prescription drugs is that

A.

AWPs tend to vary widely from region to region of the United States

B.

The AWP is often substantially higher than the actual price the pharmacy pays for prescription drugs

C.

A health plan’s contracted reimbursement to a pharmacy for prescription drugs is typically the AWP plus a percentage, such as 5%

D.

The AWP usually is lower than the estimated acquisition cost (EAC) for most prescription drugs

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